Rwanda Sets Ambitious Target for Electricity Generation and Universal Access by 2034
Rwanda is poised for a significant transformation in its energy landscape, with plans to more than double its electricity generation capacity to a substantial 1,066 megawatts (MW) by 2034. This ambitious goal, detailed in a recent end-of-year statement, will be fueled by substantial investments across a spectrum of energy sources, including hydropower, solar power, and forward-looking technologies like nuclear energy. The strategy not only focuses on increasing power generation but also on achieving universal electricity access for all households, a milestone the government aims to reach by 2029.
Over the past five years, Rwanda has witnessed remarkable progress in expanding electricity access. The number of households connected to electricity has surged from 64.53 per cent to an impressive 85.4 per cent, marking an increase of over 20 percentage points. This expansion is attributed to a dual approach: strengthening the national grid and leveraging the growing potential of solar energy. Currently, 60.1 per cent of connected households are served by the national grid, while a significant 25.3 per cent rely on off-grid solar solutions. In parallel, the nation’s installed electricity generation capacity has more than doubled, growing from 238.36 MW in the 2020/21 period to the current 467.14 MW. The 10-year strategic plan (2024–2034) outlines a clear roadmap for reaching the 1,066 MW target.
Hydropower: The Backbone of Rwanda’s Energy Strategy
Hydropower continues to be a cornerstone of Rwanda’s energy expansion efforts, with a robust pipeline of projects at various stages of development. Several key initiatives are either under construction, in the planning phase, or undergoing feasibility studies.
- Nyabarongo II Hydropower Plant: This significant project, slated to generate 43.5 MW, is currently 57 per cent complete, demonstrating substantial progress.
- Rukarara VI Hydropower Plant: With a projected output of 9.7 MW, this plant is 26 per cent complete and represents another vital addition to the nation’s hydropower portfolio.
- Nyirahundwe Hydropower Plant: This smaller but important project, with a capacity of 0.91 MW, is already 71 per cent complete, nearing its operational phase.
Beyond these domestic projects, Rwanda is also a key partner in the Rusizi III Hydropower Project. This large-scale regional initiative, jointly developed with Burundi and the Democratic Republic of Congo, is designed to generate 206 MW. Construction has commenced, although progress has faced some headwinds due to political dynamics among the partner nations. Furthermore, feasibility studies are actively underway for the potential expansion of the Ntaruka Hydropower Plant. The findings of this study, expected next year, will determine the extent of additional capacity that can be integrated into the national grid.
Solar Power: Harnessing the Sun for Future Demand
As Rwanda looks towards meeting its escalating energy demands, solar power is emerging as a crucial component of its future energy mix. A range of solar projects are in various stages of planning and development:
- Mpanga Solar PV Plant: This 30 MW solar facility, located in Kirehe District, is a key planned project. A tender has already been issued for its design, supply, installation, testing, and commissioning, encompassing the entire development lifecycle from engineering and procurement to construction and integration into the national grid.
- Nyabarongo II Solar PV Project: Complementing the hydropower plant of the same name, this ambitious project aims to add 200 MW of solar capacity.
- Izuba CB Energy Rwanda Plant: This 4.13 MW solar plant is another planned addition to the country’s renewable energy portfolio.
The financing of these solar projects is expected to follow two primary models: pre-financing arrangements involving potential lenders and Power Purchase Agreements (PPAs). Under the PPA model, developers will be required to demonstrate robust financing capacity and proven experience in constructing and operating power plants.
Financing the Grand Vision
The comprehensive 10-year strategic plan is estimated to require an investment of at least $3.2 billion. To meet this substantial financial requirement, Rwanda plans to mobilize funds through a diversified approach, including concessional loans, climate finance instruments, green bonds, and carbon credits. This multifaceted financing strategy aims to ensure the sustainable development of the nation’s energy sector.
Modernizing Infrastructure for Reliable Power
Alongside the expansion of generation capacity, Rwanda is making significant investments in upgrading and modernizing its electricity infrastructure. This includes a substantial enhancement of the distribution network:
- Distribution Lines: The length of rehabilitated and upgraded electricity distribution lines has grown from 944 km in 2020/21 to 1,158 km today. Nationally, a total of 38,358.83 km of electricity distribution lines have been established, comprising 12,645.40 km of medium-voltage lines and 25,713.43 km of low-voltage lines.
- Kigali City Network: Rehabilitation efforts for electricity distribution networks within the capital city, Kigali, have reached an advanced stage of 67 per cent completion.
- Substations: To bolster power distribution capabilities across the country, 37 substations have been constructed.
The long-term strategy also prioritizes the reduction of power outages. This will be achieved through the replacement of aging, low-capacity equipment and the diversification of energy supply sources, ensuring a more resilient and reliable power system.
Transforming Lives Through Electricity Access
The impact of increased electricity access is profoundly transforming the lives and livelihoods of Rwandan citizens. Residents in previously underserved areas are experiencing significant improvements in their quality of life.
Berancille Uwimana, a resident of Munyaga Sector in Rwamagana District, shared her perspective, stating, “We feel we have moved from darkness into a better life. We were widows with no homes, and now we have houses and electricity.”
Juvenal Nkuranga, from Kaduha Cell, highlighted the positive influence on education and economic prospects. “Our children study better, their performance has improved, and we are now thinking about income-generating projects,” he remarked, underscoring the tangible benefits of reliable power.
Looking further into the future, the government is also exploring the potential of nuclear power. Plans are underway to establish nuclear power reactors with a combined capacity of 110 MW within the next decade, with initial steps anticipated to begin as early as 2025. This forward-thinking approach signals Rwanda’s commitment to a diversified and technologically advanced energy future.
